UXD Protocol (UXP)

UXD is a Solana-based stablecoin protocol employing a novel stability mechanism, governed by the UXP token.

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:

Audits & Exploits

• Bug bounty program can be found [insert here].

Technology

• Whitepaper or docs can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on: Solana

How it works

• From Bankless (15-4-2022):

"When a user mints UXD, the protocols fully collateralized stablecoin, each $1 of user collateral (like SOL) is deposited into a decentralized perpetuals exchange and used to open a corresponding $1 short position. Through this, the protocol will be delta-neutral, meaning that the long and short positions will negate changes in the price of the collateral in either direction.

As it is opening perpetual futures positions, UXD also accrues or assumes responsibility for the funding payments. When funding is positive, i.e., long positions are paying short positions, the protocol accrues funding, a portion of which is distributed to an insurance fund. When funding is negative, meaning shorts are paying longs, the insurance fund is used to make payments on behalf of UXD holders."

Staking

• From Bankless (15-4-2022):

"Along with benefitting from the secular growth in stablecoins, a key catalyst for UXD is the launch of its protocol fund. The fund will allocate the yield from positive to different stakeholders within the protocol through utilizing a unique veREV token model. This model works by allowing lockers of UXP, the protocol’s governance token, to receive said yield either in the form of more UXP, or via the protocol purchasing from them some of their locked stake.

This mechanism allows long-term aligned tokenholders to increase their stake in the network, while also providing an elegant option for lockers to exit the system over time. In addition, it should serve to increase demand for UXP, as UXP must be purchased on the open market to be distributed to lockers."

Roadmap

• Can be found [Insert link here].

Usage

• From Bankless (15-4-2022):

"Despite implementing significant guardrails at launch and currently employing a $2.5 million daily cap on new UXD minted, its market cap sits at $31 million, placing it as the largest Solana native stablecoin."

Team, Funding and Partners

Team

• Full team can be found [here].

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